Creaking JJB Sports passed fit for extra time

JJB can now press ahead with plans to revamp stores, financed through a proposed 65 million pound equity fundraising and a 25 million pound loan agreement with Bank of Scotland (LLOY.L).

These plans were dependent on the CVA being approved.

Shares in JJB, which prior to Tuesday had lost 93 percent of their value over the last year, were up 8 percent at 28 pence at 1457 GMT, valuing the business at about 36 million pounds.

"The big sports suppliers (such as Adidas (ADSGn.DE) and Nike (NKE.N)) want JJB to survive, to avoid the industry being dominated by Sports Direct (SPD.L), but it is not clear that consumers are that bothered, given how badly the business is trading and the huge losses being incurred by JJB," said Arden Partners analyst Nick Bubb.

Analysts forecast the group made a loss before tax and one-off items of 42.5 million pounds in the year through January, according to Thomson Reuters I/B/E/S data.

Several store groups have been critical of CVAs, which have been used by struggling retailers such as outdoor goods group Blacks Leisure (BSLA.L) and do-it-yourself firm Focus, arguing they advantage weak companies and give them an unfair advantage over good businesses that honour their lease obligations.

"The idea that this CVA thing saves jobs is ludicrous. What it is, is postponing and dragging out a process that needs a much faster recycle," said Ian Cheshire, Chief Executive of Kingfisher (KGF.L), Europe's biggest home improvement retailer, at last week's Retail Week conference.

Archives JJB

...Ashley's equally abrasive entrepreneurial friend, told Reuters.Having seen off competitors such as the once-mighty JJB Sports in Britain, Sports Direct now has 434 stores at home, as well as 270 more in 19 countrie...

...The former chief executive of failed retailer JJB Sports, once a British household name, was convicted of a 1 million pound ($1.6 million) fraud by a London court on Thursday, ending a five-year investigation.

...demand for its value offers, supported by a mixture of acquisitions, expanding online sales and the demise of rivals like JJB Sports.The firm's shares, up 88 percent on a year ago, entered Britain's blue-chip FTSE ...

...for withholding products from the group, and in 2011 said of two rival retailers: "I'll finish off JJB first, then I'll move on to JD."In 2012 JJB buckled and went bust, with Sports Direct buying up some of its sto...

...about 400 stores across Britain through a mixture of acquisitions, rising online sales and the demise of rivals such as JJB Sports, leading the UK sports scene with value-led offers that have chimed well with cash-...

...owns brands such as Slazenger and Dunlop, has grown rapidly during the downturn, thanks partly to the demise of rival JJB Sports, as well as acquisitions and growing online sales. It now wants a greater presence ac...

...total, the brand has said 14 Sporting Pro stores will open their doors before Christmas.
Head of Sporting Pro and former JJB chief executive, Tom Knight, said: “Our first stores are near completion and we’re look...

...Dunlop and Lonsdale, has grown rapidly in Britain during the downturn, thanks partly to the demise of rivals such as JJB Sports, as well as growing online sales and staff motivated by a lucrative bonus scheme.The f...

...British retailer Matalan looks to capitalize on the opening in the UK market left by the demise of JJB Sports. It’s launching Sporting Pro in September, relying on the expertise of the Intersport network.

...119 jobs at risk, is the latest blow to a retail industry which has seen a string of household names like Woolworths, JJB Sports and Comet succomb to the downturn, though many of them have emerged in some form.Aqua...

...the same period last year. In September Sports Direct also acquired a large share of stocks and twenty stores of the JJB Sports chain, which is currently in bankruptcy court.
At an international level, retail sale...

...JD Sports saw the demise of the JJB Sports chain as an opportunity to fill in the gap in sports performance retail in England. And now the British press is reporting on the opening of the first JD Pro store on Bow ...

...JJB Sports is closing the bulk of its stores with the loss of around 2,200 jobs, the latest British retailer to fall victim to a downturn in consumer spending after administrators found a buyer for only 20 of its s...

...The break-up of loss-making and debt-laden British sporting goods retailer JJB Sports is set to begin with market leader Sports Direct sealing a deal to buy 60 of its stores, a source close to the deal told Reuters...

...Debt-laden British retailer JJB Sports Plc said on Monday it was appointing administrators to sell its assets and brands after failing to receive an offer for the entire company, threatening thousands of jobs.

...Debt-mired JJB Sports put itself up for sale on Thursday and warned investors their shares may be worthless, placing the sports goods retailer at risk of becoming another big-name British retail casualty.